Delhi NCR- and San Francisco-based Innovaccer, which became India’s first healthtech unicorn, has raised $150 Mn in a Series E funding round.
Led by Mubadala Capital, the round also saw participation from existing investors B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, Steadview Capital, Tiger Global Management. New investors on the board include Whale Rock Capital Management, Avidity Partners, and Schonfeld Strategic Advisors.
The Series E round brings the total capital raised by the healthtech unicorn to over $375 Mn, valuing Innovaccer at $3.2 Bn, up from $1.3 Bn in February 2021.
The funds raised will be used to invest in research and development, hiring talent across customer experience, product, and engineering functions, scale its Health Cloud suite — a complete software platform that works on patient healthcare data silos.
Innovaccer further intends to release a new portfolio of Innovation Accelerators in 2022. Through it, the unicorn will help healthcare organisations timely tackle common and high-impact use cases as opposed to traditional methods and technologies.
Founded in 2014 by IIT-Kharagpur graduates Abhinav Shashank and Kanav Hasija and IIM- Ahmedabad alum Sandeep Gupta, Innovaccer analyses healthcare data to provide actionable insights to healthcare providers, hospitals, insurance companies and other organisations and businesses.
As the company primarily deals with global clients, its key competitors include eClinicalWorks, Allscripts CareDirector, Healthecare, MicroMD PM and others.
The Innovaccer Health Cloud software is used by 50+ healthcare organisations — including Orlando Health, MercyOne, and CommonSpirit Health. It unifies previously siloed data and helps these providers achieve better care quality at a lower cost. It further allows its customers and partners to develop interoperable applications to improve patient outcomes.
Currently, the platform is being used to maintain medical records of over 24 Mn patients. It claims to generate savings of more than $600 Mn for institutions and healthcare providers in the US.
Innovaccer only works for healthtech companies in the US only, as the Indian market is currently a setback for the startup — both data-wise as well as privacy-wise. In an interaction with Inc42, cofounder Shashank has previously stated that given relevant opportunities, large and digitised healthcare data set, the startup will ensure footprint in other geographies — starting with the UAE, Europe and India.
The Indian healthtech market is estimated to touch $21 Bn by 2025, which is just 3.3% of the total addressable healthcare market pegged to reach $638 Bn in 2025.
Riding the healthtech wave post-pandemic, a lion’s share of this year’s healthtech funding was cornered by two unicorn rounds. Innovaccer got $105 Mn in February this year and IPO-Bound PharmEasy raised $350 Mn in April to enter the coveted unicorn club.
According to Inc42 Plus analysis, in 2021 alone, Indian healthtech startups have raised close to $2 Bn across 127 deals (as of December 11th).